Nexans Full Year Results 2007
19 Feb 2008
Increased 2007 profits and solid fundamentals lead Nexans to view the future with confidence
- Net sales in 2007 totalled A$12.297 billion compared with A$12.424 billion in 2006. At constant non-ferrous metal prices1, sales amounted to A$8 billion compared with A$7.369 billion in 2006. At constant consolidated scope and exchange rates, sales have increased by 4.8% compared with 2006, representing organic growth of 12.1% for the cable business.
- Operating margin2 amounted to A$679 million, an increase of 57% compared with 2006. Operating margin as a percentage of sales rose from 5.8% to 8.5% at constant metal prices.
- Net income (Group Share) was A$314 million in 2007 compared with A$399 million in 2006. Excluding a one-off gain of A$247 million in 2006 from the sale of distribution businesses in Switzerland, net income doubled over a 12 month period.
- The Group’s net financial debt stood at A$481 million at December 31, 2007, compared with A$1048 million at December 31, 2006. The reduction in debt is attributable to a significant increase in cash flows from operations in the second half of the year and the considerable reduction in the working capital resulting from the reduction in electrical wires activity.
“Boosted by excellent 2007 results and a sound development model, we have decided to revise our medium-term objectives.”
Commenting on the 2007 results, Nexans Chairman and CEO Gerard Hauser said: “Our results for 2007 indicate sound performance. Showing organic growth of more than 12%, our cable businesses sales are increasing in all geographical areas across the infrastructure, industry and building markets. A year after the launch of our 3 year strategic plan, this performance offers clear proof of the pertinence of our strategy, which aims to establish Energy at the core of the Group’s activities, re-balance our presence throughout the world and constantly improve the value added of our product portfolio. Indeed in 2007 we started to see the first fruits of this new strategic direction. We are also please by the positive effect of our external growth strategy implemented several years ago. The strong performance of Olex is evidence that we are making the right choices. The integration of Madeco, the cable industry leader in South America, into the Group should also help to improve our performance in the future. "
Note:
1 To neutralise the effects of variations in the purchase price of non-ferrous metals and thus measure the underlying sales trends, Nexans also calculates its sales using a constant price for copper and aluminium.
2 A management indicator use by the Group to measure its operational performance.
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